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Circular 230 - Summary of rules for practice before the IRS

I need a summary of Circular 230. There doesn't need to be any specific layout-just a plain summary of the most important parts & the general meaning. I have to make a presentation to my business class. I attached the full circular 230 I found on the IRS website.


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Circular 230 is the 'bible' of the IRS concerning the rules for practice before the Internal Revenue Service under Title 31, Code of Federal Regulations, Subtitle A, Part 10. The original pronouncement was issued on August 13, 1966 and the first major revision was dated July 1, 1994. It has since been modified, clarified, revised, discussed and challenged until the recent major change effective June 5, 2005. The document is subdivided into five categories, as follows:

Subpart A - Rules governing authority to practice
Subpart B - Duties and restrictions relating to practice before the Internal Revenue Service
Subpart C - Rules applicable to disciplinary proceedings
Subpart D - Rules applicable to disqualification of appraisers
Subpart E - General provisions

The circular is not only a set of rules for tax practitioners but also contains the standards for a code of ethical behavior from the IRS point of view. The American Society of Certified Public Accountants was instrumental in advising and recommending much of the 'code of behavior' contained in the circular.

Subpart A defines what the term 'practice' includes and further defines who has authority to practice before the IRS. Practice includes all matters connected with a presentation to the Service including preparing and filing documents, corresponding and communicating with the IRS, and representing clients at conferences, hearings, and meetings. Those with proper authority include attorneys, certified public accountants, enrolled agents, enrolled actuaries and others enrollees. State licensed attorneys and CPAs are accepted for practice by virtue of their licenses. Others must take an exam before the IRS to become qualified to practice. All licensed representatives must renew their licenses periodically and must provide evidence of the ...

Solution Summary

The solution presents a 1100 word summary of the 150 pages of Circular 230. It is a comprehensive summary which explains all the major parts of the Circular.